On December 31, 2015, Berclair Inc. had 500 million shares of common stock and 20 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2016. four million treasury shares were sold on October 1. Net income for the year ended December 31, 2016, was $1,000 million.

value: 15.00 points On December 31, 2015, Berclair Inc. had 500 million shares of common stock and 20 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2016. four million treasury shares were sold on October 1. Net income for the year ended December 31, 2016, was $1,000 million. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2011. The options were exercisable as of September 13, 2015, for 81 million common shares at an exercise price of $50 per share. During 2016, the market price of the common shares averaged $90 per share. The options were exercised on September 1, 2016 Required: Compute Berclairs basic and diluted earnings per share for the year ended December 31, 2016. (Enter your answers in millions e., 10,000,000 should be entered as 10) Numerator Denominator Earnings per Share Basic EPS 820 505 1.62 Diluted EPS 820